Artificial intelligence development and household financial asset allocation

Abstract

This paper investigates the impact of artificial intelligence (AI) development on household financial asset allocation. Using data from the 2019 China Household Finance Survey (CHFS) and employing the Tobit model, the study finds that higher levels of AI development significantly increase the proportion of financial assets allocated by households. Robustness tests using Probit and other models confirm the significance of these results. Furthermore, the study explores the mechanisms through which AI development influences household financial asset allocation, including improving job quality and promoting high-quality economic development. A heterogeneity analysis is conducted to examine differences in this effect across factors such as city size, the number of properties owned by households, levels of social trust, and the sophistication of industrial structures.